Cramer's 'Mad Money' Recap: Best-Performing Stocks

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NEW YORK ( TheStreet) -- It's time to start circling back to the best-performing stocks, Jim Cramer told his "Mad Money" TV show viewers Wednesday. Cramer said that when the bad news from Syria finally begins to subside, the stocks with the best earnings will be the first to rebound.

It may not be time just yet, but Cramer said he'd have money at the ready to buy stocks including TJX Stores ( TJX) and Urban Outfitters ( URBN), two of the best-performing retail stocks of this quarter. He was also bullish on Celgene ( CELG) and Gilead Sciences ( GILD) among the biotech group.

Stocks with meaningful buybacks, such as Viacom ( VIA), are buys, said Cramer, especially if the market takes shares lower. He was also a fan of Humana ( HUM) in the health care group and both EOG Resources ( EOG) and Pioneer Natural Resources ( PXD) in the oil patch.

In the packaged foods sector, Cramer said B&G Foods ( BGS), down 10% from its highs with a 4% yield, is very attractive, as is Starbucks ( SBUX) and Whole Foods Markets ( WFM).

Other potential buys on Cramer's list include Boeing ( BA), LinkedIn ( LNKD) and Yelp ( YELP).

Executive Decision: Richard Smith

In the "Executive Decision" segment, Cramer sat down with Richard Smith, chairman and CEO of Realogy Holdings ( RLGY), the real estate giant that lpays a part in nearly 26% of all existing homes sold in the U.S. Realogy last reported in July, posting a 22-cents-a-share earnings beat on a 17% rise in revenue. Shares trade at 15.5 times earnings with a 22% growth rate.

Smith said that despite the recent rise in interest rates, there's still enormous pent-up demand for homes at a time when interest rates are still very cheap historically. He said that coming out of what was a seven-year downturn will take years, so the recovery is still in the early innings.

When asked about home prices, Smith said valuations are still far from fair value. In some local markets, he said prices have snapped back a bit, but overall, there's still a long way to go. Smith also noted that prices are not responding to the recent rise in interest rates.

Turning to the issue of commissions paid to brokers, Smith said that currently the top brokers are producing the lion's share of business, thus commissions are higher. As sales volume increases, more brokers will enter the market and less commissions will be paid to those newer brokers, thus lowering the average.

Cramer said that with 26% of the realty market, Realogy is a pretty big player.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Carolyn Boroden over the direction of the markets.

According to Boroden's analysis, a daily chart of the S&P 500 shows the selloff may be coming to an end in just a few days. She noted floors of support between 1,615 and 1,621 as well as between 1,578 and 1,582. As long as the index holds those levels, it's likely to rebound, said Boroden. But more important than price is timing. Boroden also noted that most selloffs average 18 days in length, meaning a rally is due between this Friday and Labor Day.

Looking at a chart of the Dow Jones Industrial Average showed similar patterns, with a floor at 1,560 and timing predicting a snap back before the holiday.

But according to Dan Fitzpatrick, another technician who predicted more pain for the markets just last week, the S&P 500 falling below its 50-day moving average is a big bearish flag, one that confirms his thesis that the markets will remain in a trading pattern from now through the end of the year.

Cramer said he views these analyses as reasons to be cautious, and to wait for more market weakness before buying into any of the stocks he mentioned at the top of the show.

Lightning Round

In the Lightning Round, Cramer was bullish on Questcor Pharmaceuticals ( QCOR), First Solar ( FSLR), General Motors ( GM) and Take-Two Interactive ( TTWO).

Cramer was bearish on Southern Copper ( SCCO), SunPower ( SPWR) and PBF Energy ( PBF).

Am I Diversified?

In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.

The first portfolio included: American International Group ( AIG), Corning ( GLW), Royal Bank of Scotland ( RBS), Sonovus ( SNVS) and Facebook ( FB).

Cramer identified three-of-a-kind with this portfolio and said Royal Bank and Sonovus needed to be sold to make room for a drug stock and a defense stock.

The second portfolio's top holdings included: OncoMed Pharmaceuticals ( OMED), Bank of America ( BAC), Medical Properties Trust ( MPW), ChannelAdvisor ( ECOM) and Google ( GOOG).

Cramer said Google was too similar to ChannelAdvisor and he'd sell ChannelAdvisor and pick up a food stock that offers some dividend yield.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said there was a telling divergence in the markets today, with the consumer packaged goods stocks selling off far more than the rest of the market.

Cramer said that stocks including Procter & Gamble ( PG), General Mills ( GIS) and Colgate-Palmolive ( CL) all sold off big today, and likely aren't done going lower.

These stocks are tied to the rise in interest rates, Cramer theorized, and with rates likely to tick up even further, it will put even more pressure on these consistent earners with great dividend yields.

As other investments get more attractive, these stocks will be less attractive, said Cramer, and that means their stocks are likely to go nowhere. Since these companies are too big to be taken over unless they split up to unlock value, there's little management can do to change the tide.

If the economy slips back into recession, then consumer stocks will be back in vogue, Cramer concluded. Barring that, there's a lot more pain ahead.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

-- Written by Scott Rutt in Washington, D.C.

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC
At the time of publication, Cramer's Action Alerts PLUS had a position in FB.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

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